Business concepts

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Diminishing Returns
The law of diminishing returns says that as one input to production keeps increasing while every other input stays fixed, each additional unit adds less extra output than the unit before it, and eventually may add none at all.
Comparative Advantage
Comparative advantage is the ability to produce something at a lower opportunity cost than another party, which makes trade beneficial even when one party is better at everything.
Parkinson’s Law
Parkinson's Law says work expands to fill the time allotted for it, a satirical claim from 1955, not a tested scientific finding.
Sunk Cost
A sunk cost is money, time, or effort already spent that cannot be recovered and should carry no weight in a forward-looking decision.
Leverage
Leverage is using a fixed input — capital, labor, code, or media — to produce output disproportionate to that input, so a small amount of effort or capital controls a much larger result.
Opportunity Cost
Opportunity cost is the value of the best alternative given up when you choose one option, counting only the next-best choice, not every option rejected.
The Crusader Rule
A rule from Josh Kaufman's The Personal MBA: evaluate a new business idea against its market before committing, because an exciting idea is not yet a viable business.

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